Definition of liquidation As used in this act, liquidation shall include the winding up and settlement of the business and affairs of an association, the liquidation of its assets, the payment and satisfaction of its debts and obligations and the expenses of its liquidation, the distribution of ...
What Is Liquidation? Definition and Guide Liquidation generally refers to the process of selling off a company’s inventory, typically at a big discount, to generate cash. In most cases, a liquidation sale is a precursor to a business closing. Once all the assets have been sold, the business...
liquidation (ˌlɪkwɪˈdeɪʃən) n 1.(Commerce) a.the process of terminating the affairs of a business firm, etc, by realizing its assets to discharge its liabilities b.the state of a business firm, etc, having its affairs so terminated (esp in the phraseto go into liqui...
The court can pass an order for winding up and forcefully shutting down an organization. This is known ascompulsory liquidation. If someone connected to the business files a petition, this action could be done. This could be a director of the company or a creditor awaiting payment. However, ...
1.(Professions) a person assigned to supervise the liquidation of a business concern and whose legal authorization, rights, and duties differ according to whether the liquidation is compulsory or voluntary 2.(Commerce) a person assigned to supervise the liquidation of a business concern and whose ...
Definition:Liquidation is the process of selling offassetsto repay creditors and distributing the remaining assets to the owners. In other words, liquidation is the process of closing a business, paying off creditors, and giving the investors whatever is left over. ...
While businesses can liquidate assets to free up cash even in the absence of financial hardship, asset liquidation in the business world is mostly done as part of a bankruptcy procedure. When a company fails to repaycreditorsdue to financial hardship, a bankruptcy court may order acompulsory liqu...
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: to determine the liabilities and apportion the assets of especially in bankruptcy or dissolution liquidate a corporation compare bankruptcy b : to convert (as assets) into cash liquidate an estate intransitive verb : to liquidate something (as a corporation) liquidation ˌli-kwə-ˈ...
Liquidation preference determines who gets how much when a company is liquidated, sold, or goes bankrupt. The company’s liquidator analyzes the business’s secured and unsecured loan agreements, as well as the definition of the share capital (both preferred and common stock) in the company’s ...